What Is Profit Focused?
Being profit focused comes under the idea that a corporation’s board has a fiduciary duty to shareholders, meaning that the board, as it makes decisions, is accountable to shareholders.
How Does Profit Focused Appear In Proxy Voting?
Proposals can touch on alignment between corporate values and political activity, or director conflict of interest, or reporting on the financial impact of voluntary sustainability policy.
- Exxon Mobil Corp faced a shareholder proposal to Report on Voluntary Environmental Expenditures. The shareholder wants to understand the incurred costs and associated benefits that have accrued to shareholders (3/21).
- Costco had a recent proposal asking for a Charitable Giving Report as corporate giving should ultimately enhance shareholder value. Many view the current disclosure as insufficient in allowing the Company’s Board and shareholders to evaluate the proper use of corporate assets by outside organizations. Some of the receiving causes or organizations may be deemed controversial (1/22).